According to CW Research, paper volumes in November 2017 have displayed a positive development across international markets, namely France, Germany, and Japan; whereas Brazil continued to record a promising evolution in pulp production.
As noted by Tea Vukicevic, associate analyst with CW Research: “2017 proved to have been a very positive year for the pulp industry. Pulp manufacturers across the globe kept benefiting from overall demand improvements and kept implementing price increases. Without any substantial production increases in the following months, 2018 is expected to continue to be a positive momentum regarding pulp pricing. On the other hand, in Europe, non-integrated mills could be pressured by ongoing pulp price hikes.”
Paper production improves in Europe and Japan; Brazilian pulp output on the rise
In Western Europe, paper and carton production increased in November YoY, while pulp production faced a decrease on a yearly basis. In France, output of paper and carton recorded an expansion in volumes when compared to the previous year, while year-to-date pulp production rose above 1.5 million tons for the first eleven months of 2017. In Germany, paper and cardboard production rose to 2.0 million tons in November 2017, slightly above the volumes recorded in 2016. Similarly, utilization of recovered paper rose one percent on a yearly basis.
In Japan, the paper and pulp industries faced increasing volumes on a yearly basis. Pulp production improved three percent year-on-year, while Japanese pulp consumption grew two percent on a yearly basis.
Brazil continued to record YoY improvements in pulp production in November, but pulp exports suffered a contraction during the month due to lower demand in China and the U.S., and higher domestic pulp consumption. Brazilian pulp exports fell to 1.0 million tons in November 2017, while pulp production in the country rose six percent on a yearly basis. Over the same period, Brazilian pulp FOB prices increased by 2.2% MoM.
Find out more about CW Research’s Paper and Pulp Country Market Data here